A company can be organized in many different ways, depending on its goals.
The
structure of a company will determine the ways in which it operates and performs.
Here are some of the most common types of company [Link] Entrepreneurial
Structure is most common in small companies. The company structure is totally
centralized. This means that the leader, who is usually also the owner, makes all
the key decisions. Communication between the leader and employees is via face-to-
face conversations. It is particularly useful for new businesses as it enables the
leader to control growth and development.A Functional Structure is best suited to
large companies so that costs can be kept low. Employees perform specialized tasks.
For instance, activities related to production, marketing and finance will be
separated into three departments. However, the marketing department might include
sales, advertising and promotions. This leads to an efficient business where costs
are kept low within each department. However, it could also le A Divisional
Structure divides the company according to the type of work, region or product.
Each division contains all the necessary resources and functions within it. An
automobile company with a divisional structure might have one division for sports
cars, another for subcompact cars, and a third for sedans.
Each division is responsible for its products and has its own resources such as
finance, marketing and equipment. This structure allows flexibility and a quick
response to changes in the market place.
A Matrix Structure groups employees by both function and product. A simple example
of a matrix structure would be when individuals within the company are brought
together in order to complete a particular project or task. The individuals are
chosen for their particular skills and knowledge according to the needs of the
project. The strength of the Matrix Structure lies with the sharing of information
In general, it has become increasingly clear that through forces of globalization,
competition and more demanding customers, the structure of many companies has
become flatter and less hierarchical.
The organizational structure of P&G is comprised of three Global Business Units
(GBU’s) and a Global Operations Group. The Global Operations Group consists of
Market Development Organization (MDO) and Global Business Services (GBS).
The three GBU’s are Beauty, Health and Well-being, and Household Care. The main
responsibility of the GBU’s is to develop the overall strategy for their specific
brands. They identify consumer needs, develop new products and build brands.
Through effective research and development and marketing, they have been very
[Link] Global Business Unit has two segments: Beauty and Grooming; Health
Care and Pet Care; Fabric and Home Care, and Baby and Family Care.
The Market Development Organization (MDO) is responsible for developing plans at
local level. The MDO includes dedicated retail customers, trade channels and sales
teams specific to each country. There are seven geographic regions: North America,
Western Europe, Northeast Asia, Central & Eastern Europe / Middle East /Africa,
Latin America, ASEAN / Australia /India, and Greater China.
GBS provides information technology (IT) and standard data tools to enable the
GBU’s and the MDO to better understand and operate the business. GBS is responsible
for providing business support services at the lowest possible costs.